December 16, 2022 – Bill C-32 implements some government promises

by | Dec 17, 2022 | Featured, Industry Updates, Tax Planning & Preparation

 

In our article, “Budget 2022: What Does it Mean for Me?”, we discussed several proposed measures for implementation. Since then, the following have been passed into law.

Tax-Free First Home Savings Account (FHSA) effective April 1, 2023

A savings vehicle for first-time home buyers modeled after the Tax-Free Savings Account. The lifetime contribution limit of the FHSA is $40,000 with an $8,000 annual contribution limit.

Anti-Flipping Rule effective January 1, 2023

A property sold within 12 months of purchase will be considered a house flip. Profits from the sale would be taxed as business income.

Multi-Generational Home Renovation Tax Credit effective January 1, 2023

People adding a secondary dwelling for a family member who is a senior or person with a disability are now allowed 15% of eligible expenses and construction costs to be recovered up to $50,000.

Also receiving Royal Assent are:

 

Doubling Home Buyers’ Tax Credit (HBTC)

The amount of the HBTC is now $10,000 for qualifying first-time homebuyers.

Medical Expense Tax Credit (METC) for Surrogacy and Other Expenses

The METC is a non-refundable tax credit for people with above-average medical or disability-related expenses. The METC criteria has expanded to include expenses related to reimbursement of expenses to a surrogate mother or sperm, ova, or embryo donor.

Critical Mineral Exploration Tax Credit (CMETC)

This is a new 30% tax credit for exploration expenses incurred for the advancement of clean technology. Eligible minerals include copper, nickel, lithium, cobalt, graphite, rare earth elements, scandium, titanium, gallium, vanadium, tellurium, magnesium, zinc, platinum group metals, and uranium.

View Bill C-32 here

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